County fair worried about electric rates too

Tuesday

Jun 26, 2007 at 12:01 AMJun 26, 2007 at 9:16 PM

Wholesale energy markets have joined the blend of carnival rides, agricultural exhibits and corndogs for organizers of the Sangamon County Fair.

The board of directors for the fair, which just completed its 58th annual run, is considering a power-buying cooperative proposed by the Greater Springfield Chamber of Commerce after the fair’s AmerenCIPS electricity bills more than tripled in the month of May — about $1,000 this year compared to $295 a year ago.

It’s also an unusual topic for the fair board, but one that needs immediate attention, one board member said Tuesday.

Wholesale energy markets have joined the blend of carnival rides, agricultural exhibits and corndogs for organizers of the Sangamon County Fair.

The board of directors for the fair, which just completed its 58th annual run, is considering a power-buying cooperative proposed by the Greater Springfield Chamber of Commerce after the fair’s AmerenCIPS electricity bills more than tripled in the month of May — about $1,000 this year compared to $295 a year ago.

It’s also an unusual topic for the fair board, but one that needs immediate attention, one board member said Tuesday.

“We just want to see what we can do to try to reduce our bills. We’re a very heavy user, especially five or six days of the year,” said Jim Blankenship, who was among about a dozen people who attended a chamber informational meeting Tuesday at Lincoln Land Community College.

The power bill for this year’s fair, which ran June 13-17, has not arrived, but is expected to be higher than the $6,500 last year.

Chambers in Springfield, Effingham, Lincoln and Taylorville are considering a power-buying pool similar to that formed by chambers of commerce in Peoria, Champaign and Decatur. More than 700 small businesses signed up for an April auction that supporters said would save participants $3.3 million in the first year of a three-year contract compared to Ameren rates.

A representative of the consulting firm that conducted the auction for the other chambers told the Springfield meeting wholesale electric rates are expected to continue rising. She added that small business is not likely to be included in any legislative relief for Ameren and Commonwealth Edison customers whose power bills soared after a 10-year rate freeze ended Jan. 1.

“Our belief is what is going on here in Springfield really has to do with residential. We haven’t heard a peep out of the legislature about relief for small business,” said Bonnie Grady, a senior associate with CQI Associates of Columbia, Md.

CQI has coordinated more than 155 power-procurement auctions nationwide since 2000.

As with the Peoria, Decatur and Champaign chambers, local chamber members have been asked to sign up for an auction by July 27 for a one-time, upfront fee of $300 per location. The program is recommended for businesses with bills averaging at least $200 a month.

At some point this fall, CQI will take the pooled supplies to the open market for bids on three-year contracts.

“It puts you into a buying group to give you added clout,” Grady said.

Once the auction is completed, participants can accept or reject the proposed contract, though she said about 96 percent have signed up in previous auctions.

Most Springfield chamber members obtain power from municipally owned City Water, Light and Power and have not been affected by the jump in Ameren prices. But some who attended the Tuesday meeting questioned whether they should lock in costs when there is a possibility the legislature will restore the freeze.

Een in that unlikely event, Grady said, utility companies and power suppliers are guaranteed to challenge a new freeze in court.

“Ameren and ComEd are going to be the first ones on the courthouse steps, and when that happens, everything is going to be in limbo for at least a couple of years,” she said.

Sangamon County Fair office manager Elizabeth McDevitt was not at the meeting but has helped tracked utility bills as the board considers whether or not to jump into wholesale electric markets.

She said the fair’s utility bill from early May to early June this year totaled nearly $1,200 compared to about $800 last year. The trend is expected to continue when the bill for this year’s fair arrives next month.

“It’s mainly the entertainment and the lighting. We just know it’s going to be higher,” she said.

Nat Seiz, who helped organize the meeting for the Springfield chamber, said the chamber wanted to give members who are not on the CWLP system an alternative to their existing power supplier.

He also said small business can’t depend on the General Assembly to provide relief from rising power bills.

“There’s a lot of uncertainty going on in the legislature,” he said.

Another meeting is tentatively scheduled for July 19 at Lincoln Land.

Tim Landis can be reached at 788-1536 or tim.landis@sj-r.com.

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